The One Chart That Keeps Me Up At Night

Oct. 10, 2024 7:30 AM ET39 Comments
(17min)

Summary

  • In an environment of declining purchasing power, understanding the relationship between yield and dividend growth is essential for investors.
  • High-yield stocks might offer immediate returns, but consistent dividend growth is crucial for long-term wealth protection against inflation.
  • Building a diversified portfolio with both high-yield and growth-oriented dividend stocks maximizes returns and shields against inflation's impact.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More »
Frühlingsmorgen am Hume Lake in der Nähe von Kings Canyon Nationalpark, Kalifornien

Ron and Patty Thomas/E+ via Getty Images

(A Lengthy) Introduction

What do you prefer?

  • A 7.1% yield with the long-term potential of 2-3% annual growth.
  • A 2.3% yield with an 8-12% annual growth rate.
  • A 0.8% yield with a 15-20% annual dividend growth rate.

On a

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This article was written by

Leo Nelissen profile picture
35.76K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of DHR, GE, ODFL, CSL, CAT, DE, LHX, RTX, HD, UNP, ABBV, EXR, CNQ, AM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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